Nahapiet & Ghoshal (1998) -> SCT Flashcards
What three benefits do ‘network ties’ provide according to Nahapiet & Ghoshal (1998)?
1) acces: receiving valuable info & knowing who can use it
2) timing: getting information before others
3) referrals: providing information on available opportunities to actors in the network
How can one describe ‘social capital’ according to Inkpen & Tsang (2005)?
Social capital can be described as the sum of the actual and potential resources embedded within/ available through/ derived from the network of relationships that an individual or social unit has.
Which are the three dimensions of social capital according to Nahapiet & Ghoshal (1998)
1) Structural: the overall pattern of connections between actors
2) Relational: the kind of personal relationship between actors developed through a history of interactions
3) cognitive: the resources that provide shared representations, interpretations & systems of meaning between actors (e.g. language)
What is the underlying logic that Nahapiet & Ghoshal (1998) suggest, going from social capital to organizational advantage?
- > Social capital facilitates the creation of new intellectual capital
- > organizations stimulate high levels of social capital
- > since orgs have dense social capital, they can have an advantage over markets in creating and sharing intellectual capital
so:
social capital -> intellectual capital -> organizational advantage
Social and intellectual capital have a dynamic/feedback relationship (coevolutionary) which helps them keep their organizational advantage
What is ‘intellectual capital’ according to Nahapiet & Ghoshal (1998)?
intellectual capital is the knowledge and knowing capability of a social collective. E.g. of an organization
what are the two types of ‘knowledge’ identified by Polanyi (1967)?
Tacit knowledge: knowing how
-> e.g. how to ride a bike, not something you can learn from a book
Explicit knowledge: knowing what
-> e.g. how to use a microwave through the instructions in the manual
What is ‘individual property’ and what is ‘organizational property’ according to Nahapiet & Ghoshal (1998)?
individual property: all organizational learning takes place in someone’s head
organizational property: knowledge is an attribute to the firm
what are the two categories of knowledge according to Spender’s taxonomy (1996)
objectified knowledge (Social explicit knowledge): shared body of knowledge
collective knowledge (Social tacit knowledge): embedded in the forms of social/ institutional practice and lies in the tacit experiences and the enactment of the collective
What are the two generic processes of creating intellectual capital according to Nahapiet and Ghoshal (1998)?
the two generic processes:
1) combination and the creation of intellectual capital: combining existing knowledge to create knowledge
2) exchange and the creation of intellectual capital: new knowledge creation occurs through social interaction and coactivity
what are the 4 conditions for exchange and combination to create intellectual capital according to Nahapiet and Ghoshal (1998)?
1) opportunity
2) expectation
3) motivation
4) combination capability -> there must be a capability to combine the three other conditions must exist and it depends on the existence of prior knowledge
What are three aspects of the ‘structural dimension’ according to Nahapiet and Ghoshal (1998)?
1) network ties: beneficial because of acces, timing & referral
2) network configuration: networks and network structures (e.g. density, hierarchy etc) -> influences the range of information
3) appropriable organization: social capital can be transferred from one social setting to another -> orgs created for one purpose may be a source of valuable resources for other purposes as well.
What are two aspects of the ‘cognitive dimension’ according to Nahapiet and Ghoshal (1998)?
1) shared languages & codes: facilitation of information access (e.g. I speak Dutch and my coworker speaks French which makes it harder to share info because we don’t share a language) Language influences perception and interpretation of the environment -> enhances combination capability
2) shared narratives: two modes of cognition: ‘information/paradigmatic mode’ (= process of knowledge creation rooted in rational analysis & arguments) & ‘narrative mode’ ( = process of knowledge creation rooted in narratives such as stories). Narrative mode is useful for interpretation and facilitation of knowledge
what are 4 aspects of the ‘relational dimension’ according to Nahapiet and Ghoshal (1998)?
1) trust: more social exchange and cooperation
2) norms: consensus creates a strong foundation for capital. Decrease groupthink and is positive, but can also lead to rigidity
3) obligations and expectations: will increase motivation
4) identification: identification with other people or social groups, enhances collectiveness & increases exchange
What are factors that organizations (as social insitutions) have, that are known to contribute to high levels of social capital according to Nahapiet and Ghoshal (1998)?
time, interdependence, interaction & closure
time: stability and continuity of social structures
interdependence: social capital needs factors that make people dependent -> firms are designed around interdependence, differentiation & integration
interaction
closure: network closure by firm through legal, financial and social boundaries
what are 4 limitations of the paper by Nahapiet & Ghoshal (1998)?
1) Social capital may also have negative consequences -> restricted access to diverse resources
2) focus on only 1 aspect of intellectual capital, rather than it’s diffusion and exploitation. also focus on the process rather than the content
3) organizational advantage is not only based on knowledge and knowledge processes
4) statements regarding the relationships of social and intellectual capital are confined by the firm
